Mumbai: Studds Accessories Ltd, India’s largest maker of helmets and different -wheeler add-ons, has initiated talks with personal equity investors to elevate as a great deal as ₹ 100 crores beforehand of a deliberate preliminary public providing (IPO), stated two humans aware of the organization’s plans. Established in 1975, Studds is presently the biggest-promoting helmet logo in India. In 2016, the employer launched a premium helmet brand SMK.
The business enterprise has been engaged in talks with a few personal fairness funds and specialist pre-IPO investors to raise to ₹ one hundred crores in advance of its proposed public providing,” said the first character, asking for anonymity as the talks are non-public. “The markets have been unstable, and as a consequence, pricing of issues have been a mission for issuers. It’ll assist the employer in establishing a benchmark valuation for the initial public presenting by elevating a pre-IPO investment.
Studds is aiming to list in February, the character stated. “It is a main consumer brand, and accordingly, there is good sufficient call for their supplying. If the markets are supportive, then they would really like to go ahead and launch their IPO in February,” he introduced. “Studds Accessories Ltd (the Company) had filed a draft red herring prospectus dated August 24, 2018 (DRHP) with the Securities and Exchange Board of India (SEBI) for its IPO. The enterprise obtained the very last observations from SEBI in December 2018. The timing of the opening of the initial public presenting could be determined utilizing the enterprise and the promoter selling shareholders in consultation with Book Running Lead Managers (BRLMs), as disclosed within the DRHP,” the company said in reaction to queries. Studds, however, declined to comment on the pre-IPO funding.
Research and consulting company Frost & Sullivan stated in its August 2018 report titled 2 Wheeler Helmet and Select Accessories Market in India that Studds is the most important maker of two-wheeler helmets inside the globe using income quantity in monetary 2018. The flagship Studds emblem is advertised and bought in 21 international locations. In contrast, the premium emblem SMK is sold in 23 countries across Europe, Asia, and Latin America, according to the organization’s draft prospectus.
Studds plans to raise ₹ 98 crores in fresh capital via its proposed IPO, consistent with its draft prospectus. The IPO additionally consists of a suggestion for sale of 3. Ninety-four million shares via promoters Madhu Bhushan Khurana and Sidhartha Bhushan Khurana and other current shareholders. Studds plans to use the IPO proceeds to partially finance its -wheeler helmet and add-ons production facility and a bicycle helmet manufacturing unit, each in Faridabad. In 2017-18, Studds mentioned sales of ₹ 341.7 crores, up from ₹ 311.1 crores in the preceding year. Profit increased to ₹ 32—eight crores, from ₹ 23.6 crores within the preceding yr. Investment banks Edelweiss Financial Services and IIFL Holdings are advising the employer on the share sale.
Several businesses have tapped pre-IPO financing alternatives in recent instances. On 20 December, Mint said that Sapphire Foods, the biggest franchisee of Yum! Brands Inc., Within the Indian subcontinent, has raised ₹ 225 crores in a fresh round of investment led using Edelweiss Private Equity’s specialist pre-IPO fund. In July, an informal dining-easing place chain Barbeque Nation Hospitality Ltd raised ₹ eighty-90 crore in a pre-IPO placement from Alchemy Capital Management. A funding firm co-founded via ace inventory market investor Rakesh Jhunjhunwala.